You may be asking yourself, when would I even need to run a credit check on a potential employee? We get it – it may not seem like relevant information. But whether or not you should conduct a credit check falls to two specific factors: the nature of the position and the relation of a candidate’s credit history to the job requirements.
Nature of the Position
If you’re hiring for a position that will have access to company funds, financial records, the company safe, or other relevant financial assets, then you want to hire someone who has a track record of handling finances responsibly.
An employee credit check can reveal if a candidate has had serious financial difficulties, either currently or in the past. An applicant with these issues may be more tempted to use their status in your business to use company funds for personal matters. Additionally, it can be argued that an individual who cannot properly manage their own finances is not qualified to, and would not do a better job managing your company’s funds.
If Poor Credit Could Affect the Candidate’s Ability to Do the Job
Running a credit check is just one way you can try and evaluate if a candidate will live up to your expectations and standards for job performance. For example, if poor credit has led to court-ordered wage garnishment or the candidate needs additional, unapproved time off to attend court proceedings with collection agencies, this is all time and energy they will have to take away from their work.
While these are common scenarios in which credit background checks can be appropriate, the knowledgeable team at Barada Associates can offer these services to your business at any point in your hiring process. Call us today to schedule your consultation.